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Defense Stock Roundup: RTX, LMT Win Deals, LHX Divests Business
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Last week, a handful of multi-million-dollar contracts kept stocks in the U.S. defense space buoyant. As far as the broader market’s performance is concerned, major stock indices ended Friday’s trading session at a record high, primarily driven by better-than-expected job data for June 2021.
So, the overall picture remained optimistic and major indices of the Aerospace-Defense space ended the trailing five trading sessions in the green. Evidently, the S&P 500 Aerospace & Defense (industry) index inched up 0.7%, while the Dow Jones U.S. Aerospace & Defense index rose 0.5% in the aforementioned time period.
Among the last week’s highlights, defense majors namely Raytheon Technologies (RTX - Free Report) , Lockheed Martin (LMT - Free Report) , and Boeing (BA - Free Report) secured a number of notable deals from the Department of Defense’s daily funding session. Meanwhile, L3Harris Technologies (LHX - Free Report) completed its the sale of its Military Training business to CAE Inc. (CAE - Free Report) .
Recap of Past Week’s Important Stories
1. Raytheon’s business unit, Missiles and Defense, clinched a $2 billion contract to conduct the engineering and manufacturing development (EMD) phase of the Long-Range Standoff (LRSO) Weapon System. The award has been offered by the Air Force Nuclear Weapons Center, Eglin Air Force Base, FL.
2. Lockheed’s Aeronautics unit won a $1.8 billion contract to procure recurring logistics services for delivered F-35 jets. The deal has been awarded by the Naval Air Systems Command, Patuxent River, MD.
The company also secured a $129 million modification contract for the production and delivery of three MH-60R aircraft, as replacement-in-kind for the U.S. Navy. The deal has been awarded by the Naval Air Systems Command, Patuxent River, MD.
3. Boeing clinched a $129 million contract to provide Mission Training Center (MTC) simulation services for F-15 jets. The deal has been awarded by the Air Force Life Cycle Management Center, Wright-Patterson AFB, OH.
The contract is expected to get completed by Dec 31, 2021. The agreement aims to support the Air Combat Command, Pacific Air Forces and Air Force in Europe locations. Work related to this deal will be performed in various locations across the United States, Japan as well as United Kingdom (read more: Boeing Wins $129M MTC Services Deal for F-15 Jets).
4. L3Harris Technologies has completed the sale of its Military Training business to CAE Inc. and its Combat Propulsion Systems and related businesses to Germany-based RENK AG for a total amount worth $1.45 billion.
L3Harris intends to use the sale proceeds for share repurchases. Quantitatively, as of February 2021, the company has completed divestitures with a combined $1.4 billion of revenues for $2.5 billion in expected proceeds (read more: L3Harris Divests Business Segments for a Combined $1.45B).
Performance
Over the past five trading sessions, the defense biggies put up a mixed show. While most of the stocks delivered poor performance, Textron (TXT - Free Report) rose 3%.
In the last six months, the industry's performance was impressive. Textron gained the most with 46.8% surge in share price, followed by General Dynamics.
The following table shows the price movement of the major defense players over the past five trading days and during the last six months.
Company
Past Week
Last 6 Months
LMT
-0.14%
9.38%
BA
-4.71%
11.84%
GD
-0.67%
29.13%
RTX
-0.02%
24.89%
NOC
-1.10%
24.48%
TXT
2.75%
46.80%
LHX
-0.72%
20.34%
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From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
You know this company from its past glory days, but few would expect that it’s poised for a monster turnaround. Fresh from a successful repositioning and flush with A-list celeb endorsements, it could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in a little more than 9 months and Nvidia which boomed +175.9% in one year.
Image: Bigstock
Defense Stock Roundup: RTX, LMT Win Deals, LHX Divests Business
Last week, a handful of multi-million-dollar contracts kept stocks in the U.S. defense space buoyant. As far as the broader market’s performance is concerned, major stock indices ended Friday’s trading session at a record high, primarily driven by better-than-expected job data for June 2021.
So, the overall picture remained optimistic and major indices of the Aerospace-Defense space ended the trailing five trading sessions in the green. Evidently, the S&P 500 Aerospace & Defense (industry) index inched up 0.7%, while the Dow Jones U.S. Aerospace & Defense index rose 0.5% in the aforementioned time period.
Among the last week’s highlights, defense majors namely Raytheon Technologies (RTX - Free Report) , Lockheed Martin (LMT - Free Report) , and Boeing (BA - Free Report) secured a number of notable deals from the Department of Defense’s daily funding session. Meanwhile, L3Harris Technologies (LHX - Free Report) completed its the sale of its Military Training business to CAE Inc. (CAE - Free Report) .
Recap of Past Week’s Important Stories
1. Raytheon’s business unit, Missiles and Defense, clinched a $2 billion contract to conduct the engineering and manufacturing development (EMD) phase of the Long-Range Standoff (LRSO) Weapon System. The award has been offered by the Air Force Nuclear Weapons Center, Eglin Air Force Base, FL.
Work related to the deal will be executed in Tucson, AZ. (read more: Raytheon Wins $2B Deal to Support LRSO Weapon System).
2. Lockheed’s Aeronautics unit won a $1.8 billion contract to procure recurring logistics services for delivered F-35 jets. The deal has been awarded by the Naval Air Systems Command, Patuxent River, MD.
The contract is expected to be completed by December 2021. Majority of the work related to this deal will be performed in Fort Worth, TX (read more: Lockheed Wins $1.8B Contract to Support F-35 Program).
The company also secured a $129 million modification contract for the production and delivery of three MH-60R aircraft, as replacement-in-kind for the U.S. Navy. The deal has been awarded by the Naval Air Systems Command, Patuxent River, MD.
Majority of the work related to this deal will be executed in Owego, NY (read more: Lockheed Martin Wins $129M MH-60R Aircraft Supply Deal).
3. Boeing clinched a $129 million contract to provide Mission Training Center (MTC) simulation services for F-15 jets. The deal has been awarded by the Air Force Life Cycle Management Center, Wright-Patterson AFB, OH.
The contract is expected to get completed by Dec 31, 2021. The agreement aims to support the Air Combat Command, Pacific Air Forces and Air Force in Europe locations. Work related to this deal will be performed in various locations across the United States, Japan as well as United Kingdom (read more: Boeing Wins $129M MTC Services Deal for F-15 Jets).
4. L3Harris Technologies has completed the sale of its Military Training business to CAE Inc. and its Combat Propulsion Systems and related businesses to Germany-based RENK AG for a total amount worth $1.45 billion.
L3Harris intends to use the sale proceeds for share repurchases. Quantitatively, as of February 2021, the company has completed divestitures with a combined $1.4 billion of revenues for $2.5 billion in expected proceeds (read more: L3Harris Divests Business Segments for a Combined $1.45B).
Performance
Over the past five trading sessions, the defense biggies put up a mixed show. While most of the stocks delivered poor performance, Textron (TXT - Free Report) rose 3%.
In the last six months, the industry's performance was impressive. Textron gained the most with 46.8% surge in share price, followed by General Dynamics.
The following table shows the price movement of the major defense players over the past five trading days and during the last six months.
Zacks Names “Single Best Pick to Double”
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
You know this company from its past glory days, but few would expect that it’s poised for a monster turnaround. Fresh from a successful repositioning and flush with A-list celeb endorsements, it could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in a little more than 9 months and Nvidia which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>